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NEW YORK (TheStreet) -- Natural Alternatives (NAII) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATURAL ALTERNATIVES (NAII) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 26.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- NAII has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.77, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 96.70% to $4.78 million when compared to the same quarter last year. In addition, NATURAL ALTERNATIVES has also vastly surpassed the industry average cash flow growth rate of 10.23%.
- NATURAL ALTERNATIVES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, NATURAL ALTERNATIVES increased its bottom line by earning $0.29 versus $0.23 in the prior year.
- You can view the full analysis from the report here: NAII Ratings Report